Venture Capital

Venture Capital Basics

What It Is: Institutional venture capital comes from professionally managed funds that have $25 million to more than $1 billion to invest in emerging growth companies. Venture capital focuses on capital investments in private, young, fast-growing companies.

Appropriate for: High-growth, high-potential companies that are capable of becoming market leaders, and being profitable in five to eight years.

Best Use: Varied. From financing product development and commercializing promising technologies to building durable well-run businesses.

Cost: Expensive. Institutional venture capitalists purchase significant equity in a business. The earlier the investment stage, the more equity is required to persuade an institutional venture capitalist to invest. The range of funds typically available is $500,000 to more than $30 million.

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News and Articles About Venture Capital

7 Ways to Kill a Perfect Investor Pitch

7 Ways to Kill a Perfect Investor Pitch

The very fact that investors are in front of you means they’re interested in hearing your pitch. You already have their attention; the trick is keeping it.
Steve Case's Revolution Growth Invests $22 Million to Help Sweetgreen Become 'Chipotle of Salads'

Steve Case's Revolution Growth Invests $22 Million to Help Sweetgreen Become 'Chipotle of Salads'

Three college kids from Georgetown launched a salad shop on the cusp of the Great Recession. Having managed to thrive in the six years since, it is now poised for explosive growth.
Social Entrepreneurship Tips from Annie's, Patagonia and Fund Good Jobs

Social Entrepreneurship Tips from Annie's, Patagonia and Fund Good Jobs

Going into business doesn't require sacrificing your ideals. Here are three lessons we learned about doing good and doing well.
Should You Go East Or West for Your Venture Capital?

Should You Go East Or West for Your Venture Capital?

There are big differences between venture capital firms on the East and West Coasts. Here's what you need to know to pick the right one.
Why Venture Capitalists Don't Care About Your Pitch

Why Venture Capitalists Don't Care About Your Pitch

Ideas are really the easy part of a startup; what VC's are increasingly looking for is the ability to execute.

What This Female CEO Learned About Gender Bias After Pitching 200 VCs

Women tend to undersell their vision compared to men when pitching VCs, but there's more to successful pitching than a big promise. Here's one CEO's lessons.
An Online Marketplace Brings Made-to-Order Goods to the Internet

An Online Marketplace Brings Made-to-Order Goods to the Internet

On CustomMade.com, buyers post a photo or a description of what they want and craftspeople bid on the project.
Where Startup Funding Really Comes From (Infographic)

Where Startup Funding Really Comes From (Infographic)

VCs and angel investors get a lot of attention, but personal loans and credit, followed by investments from friends and family, are the top funding sources for startups.
Report: Dropbox Eyeing $8 Billion Valuation

Report: Dropbox Eyeing $8 Billion Valuation

The online data-storage company is reportedly looking to raise $250 million in the next few weeks, seeking a valuation of about $8 billion.
Why It's Harder For Women to Raise VC Funds

Why It's Harder For Women to Raise VC Funds

The glass ceiling is still very much intact, but entrepreneurs and VCs have the power to close the gender gap. Here's how.
The Passive Check In: Is This Foursquare's Hail Mary Pass?

The Passive Check In: Is This Foursquare's Hail Mary Pass?

Amid much criticism, Foursquare is mounting an offense that has many in the startup world sitting up and taking notice.
Why So Many VC Firms Invest in the Same Companies

Why So Many VC Firms Invest in the Same Companies

How to understand venture capital's herd mentality.
Zombie VC Firms Can Be an Entrepreneur's Nightmare

Zombie VC Firms Can Be an Entrepreneur's Nightmare

Entrepreneurs, beware: When a VC firm shuts down, the obligation to deliver a return on the investment rarely goes away.
Everything You Wanted to Know About VC Liquidation Preference But Were Afraid to Ask

Everything You Wanted to Know About VC Liquidation Preference But Were Afraid to Ask

Read the second part of a series that walks you step-by-step through a venture capital deal.
No Revenue, No Problem: Pinterest Raises Another $225 Million

No Revenue, No Problem: Pinterest Raises Another $225 Million

The virtual-scrapbooking social network site has raised $564 million to date without any visible source of revenue. But that will soon change.
Confidence Among Silicon Valley VCs at Highest Since 2007, Report Shows

Confidence Among Silicon Valley VCs at Highest Since 2007, Report Shows

Despite five consecutive quarterly increases, Silicon Valley confidence still lags behind that seen in 2004, 2005 and 2006.
8 Startup Events and News to Watch This Week

8 Startup Events and News to Watch This Week

Get the 411 on crowdfunding from General Assembly, Denver's Galvanize wants you to code for a cause, Nashville gets KEEN on entrepreneurship, TechCrunch brings the Startup Battlefield to Berlin. This week's notable news and startup events for entrepreneurs.
Why VCs Often Turn Away Promising Investments

Why VCs Often Turn Away Promising Investments

If you are rejected, don't automatically assume it's your business plan that's the issue. It could be the firm's approach to its fund's investment cycle.
Launching Today: Silicon Valley Venture Fund for Big Data Startups

Launching Today: Silicon Valley Venture Fund for Big Data Startups

Data Elite wants to fill a need for big data startups that aren't satisfied by generic startup incubators and investment funds. And it has major backers ready to make sure it succeeds.
Billionaire Reid Hoffman Reveals LinkedIn's 2004 Pitch Deck Along With Invaluable Startup Advice

Billionaire Reid Hoffman Reveals LinkedIn's 2004 Pitch Deck Along With Invaluable Startup Advice

The LinkedIn co-founder and VC shares valuable insight on what entrepreneurs need to know when pitching their startups to investors.
The Worst Business Plan Mistake Entrepreneurs Make

The Worst Business Plan Mistake Entrepreneurs Make

If you think you can just hire someone else to do the dirty work of writing your business plan, think again.
How Blind Smartphone Users Helped This Startup Test the Waters

How Blind Smartphone Users Helped This Startup Test the Waters

The co-founder of Fleksy explains how focusing on a niche demographic prepared him for the mass market.
Uber and Flipboard Help VC Deal Activity Hit $7.2 Billion Last Quarter

Uber and Flipboard Help VC Deal Activity Hit $7.2 Billion Last Quarter

While the mobile industry had a record-breaking quarter for VC funding, health care was a flop.
Venture Capital Trends by State, Industry (Infographic)

Venture Capital Trends by State, Industry (Infographic)

Venture capitalists invest approximately $20 billion a year into U.S. companies. Where does the money go? This infographic has the answers.
Your Secret Decoder Ring for VC Speak

Your Secret Decoder Ring for VC Speak

Venture capitalist Sharon Wienbar gives us the skinny on what kind of questions VCs ask and why they ask them.
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